Corporate Social Responsibility as a Mediator of the Effect of Brand Awareness and Corporate Reputation on Customer Loyalty

Abstract

Factors that promote customer loyalty are of great concern to the banking sector because loyalty predicts business success. The purpose of this study is to examine the mediation role of corporate social responsibility on the effect of brand awareness and corporate reputation on customer loyalty. Data was collected through a cross sectional survey from 405 bank customers. Research hypotheses were tested using the structural equation model. The findings show that corporate social responsibility partially mediates the effect of both brand awareness and corporate reputation on customer loyalty. The results indicate that corporate social responsibility plays a vital role within the banking sector as it mediates the effect of brand awareness and corporate reputation on customer loyalty. If banks engage in successful corporate social responsibility practices, brand awareness and corporate reputation are enhanced and this result in improved customer loyalty. By empirically examining corporate social responsibility as a mediator on the effect of brand awareness and corporate reputation on customer loyalty the study seeks to contribute to the scholarly conversation.